This week the IP (Industrial Production) number was released for June. It rose .4%, a little less than expected, and the month before was .7%. Capacity utilization came in at 75.4% from 75.1%. The recovery in the economy is clearly in place but there are problems. Besides the input cost rising, there is a shortage of raw materials throughout the supply chain.
This has backlogged retailers in various areas. The average time for companies needing materials to make their products is 85 days. That is a record according to the Institute of Supply Management.
Some of the items that are delayed are autos, home improvement materials, furniture, and electronic equipment of all kinds. It will take time to solve these problems.